Time Magazine 2014 Annual Report Download - page 118

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
16. COMMITMENTS AND CONTINGENCIES
Commitments
Time Warner has commitments under certain network programming, film licensing, creative talent, employment and other
agreements aggregating $33.577 billion at December 31, 2014.
The Company also has commitments for office space, studio facilities and operating equipment. Time Warner’s net rent
expense was $358 million in 2014, $316 million in 2013 and $319 million in 2012. Included in such amounts was sublease
income of $33 million for 2014, $41 million for 2013 and $40 million for 2012.
The commitments under certain programming, film licensing, talent and other agreements (“Programming and Other”)
and minimum rental commitments under noncancelable long-term operating leases (“Operating Leases”) payable during the
next five years and thereafter are as follows (millions):
Programming
and Other
Operating
Leases
2015 .................................................................... $ 5,207 $ 317
2016 .................................................................... 3,660 309
2017 .................................................................... 3,626 284
2018 .................................................................... 3,379 259
2019 .................................................................... 3,148 125
Thereafter ................................................................ 14,557 186
Total .................................................................... $ 33,577 $ 1,480
Additionally, as of December 31, 2014, the Company has future sublease income arrangements of $29 million, which are
not included in Operating Leases in the table above.
Contingent Commitments
The Company also has certain contractual arrangements that would require it to make payments or provide funding if
certain circumstances occur (“contingent commitments”). Contingent commitments principally include amounts to be paid in
connection with acquisitions, dispositions and post-production term advance obligations on certain co-financing
arrangements.
The following table summarizes the Company’s contingent commitments at December 31, 2014. For post-production term
advances where payment obligations are outside the Company’s control, the timing of amounts presented in the table
represents the earliest period in which the payment could be requested. For other contingent commitments, the timing of
amounts presented in the table represents when the maximum contingent commitment will expire, but does not mean that the
Company expects to incur an obligation to make any payments within that time period. In addition, amounts presented do not
reflect the effects of any indemnification rights the Company might possess (millions).
Nature of Contingent Commitments Total 2015 2016-2017 2018-2019 Thereafter
Guarantees ........................... $ 1,536 $ 131 $ 589 $ 85 $ 731
Letters of credit and other contingent
commitments ....................... 817 37 201 12 567
Total contingent commitments ........... $ 2,353 $ 168 $ 790 $ 97 $ 1,298
102